Welcome to the Annual General Meeting of Shareholders ...€¦ · Welcome to the Annual General...

Local knowledge. Global power. 1

Welcome to the Annual General Meeting of Shareholders AEGON N.V.

Welkom op de jaarlijkse Algemene Vergadering van Aandeelhouders AEGON N.V.

In order to hear a simultaneous translation into English, we would like to offer you the use of a headset. Please, choose channel 4.

Voor het beluisteren van een simultaanvertaling in het Nederlands kunt u gebruikmaken van een koptelefoon. Kies hiervoor kanaal 3.


Dudley Eustace

Chairman Supervisory Board

Voorzitter Raad van Commissarissen


Agenda item 1 / Agendapunt 1

Opening

Agenda



Presentation on the course of business andsignificant events in 2008

Presentatie over de gang van zaken enbelangrijke gebeurtenissen in 2008

Agenda


Course of business and significant events in 2008

Alex Wynaendts, CEO & Chairman of the Executive Board


3

1

Strategy update June 2008

2

Reallocate capital towards businesses with higher growth and return prospects

Improve growth and returns from existing businesses

Manage AEGON as an international group

Strategic priorities to improve performance


Refocus towards businesses with higher growth and return prospects

* New markets = Central & Eastern Europe, Asia and Latin America

40-50%60%

2007 2008 Targetallocation 2012

New markets*

Western Europe

US

15-25%

40-50%

25-35%

10%

60%

30%

Global businesses5-10%

10%

55%

35%

Capital allocation


Global financial turmoil affected the economy

GDP growth expectations for 20091 (EUR million)

-3.0%

-1.0%

1.0%

Jun08

Jul08

Aug08

Sep08

Oct08

Nov08

Dec08

Jan09

Feb09

USEuro zoneUK

100

150

200

250

300

350

1925

1930

1935

1940

1945

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2009

Total US credit market debt/GDP3 (%)

1. Source: Consensus Economics Inc. 20082. Bloomberg3. Total US credit market debt measured by the US Federal Reserve includes debt owed by domestic financial services firms, mortgages, corporate debt, federal

government debt, small business debt, consumer debt, state and local government debt, and foreign debt

Credit spread gapping2

Average corporate bond yields (%)

2.0

4.0

6.0

8.0

Dec/02 Dec/03 Dec/04 Dec/05 Dec/06 Dec/07 Dec/08

10 Y TreasuryAAAAABBB

Equity markets2

406080

100120140160180

2003 2004 2005 2006 2007 2008 2009

AEX (Amsterdam)S&P 500

FTSE 100

Indexed level (December 31, 2002=100)


Maintainingstrong capital

bufferremains key

Strong capital buffer required

o Demand for guarantees

o Trust

Customers

Regulators

o Focus on capitalo Take a more

conservative stance

Fungibility of capital restricted

Financial marketso Volatilityo Illiquidityo Closed capital

markets

Increased cost of capital & less availability of capital

Increase of required capital


Execution of strategy under difficult circumstances

CAPITAL

CONTINGENCYCOST

FOCUS

BUSINESS REVIEW


Capital: EUR 1.7 billion of capital released in 2008

o Active risk reduction and diversification:

– Investment risks– Optimization of asset and liability

management– Securitization– Reinsurance transactions

o Transferring risk through reinsuranceo ViF securitizationo Further improvements ALM

o Sale of risky investments

o Reinsurance of non-life catastrophic risk

Americas United Kingdom

Netherlands

Other countries

EUR 1.7 billion of capital released in 2008 through capital preservation and de-risking measures


Americas United Kingdom

Netherlands

Other countries

o Salary freezeo Staff reductions / deferred hiring:

headcount reduction of ~560o Additional savings at various divisions

Cost: planned cost measures of EUR 150 million in 2009

o Return to 2007 cost baseo Restructuring program in the

distribution businesso Reduction in number of contract

serviceso Limited salary increases

o Operational changes to sourcing and ITo Reorganization marketing and customer

services o Headcount reduction of ~110 o Limited salary increaseso Savings in distribution

o Cost containment but room for growth


~89% of common shares

~11% of common shares

100% of preferred

shares

Contingency: EUR 3 billion additional core capital structure

AEGON N.V.

Public Market Dutch StateVereniging AEGON

Capital facilityEUR 3 billion

Non-voting securitiesEUR 3 billion

EUR

EUR


o Dutch State representation on AEGON Supervisory Board- Two seats granted- Formal appointment by Annual General Meeting of Shareholders- Membership of Audit, Compensation and Nominating Committees

o State representatives approval required on certain decisions

o AEGON maintains full discretion to determine dividend on common shares

Contingency: EUR 3 billion additional core capital structure


Business review: continuous assessment of business mix

Measures taken in line with long term strategy

o Sale of real estate brokerage

US Netherlands

o New organizational structureo Downsizing of institutional spread

based balances in the USo Closing down of car credit insuranceo Merger of broker-dealers

o Strategic refocus of Canadian business

Canada


Despite market turmoil continued focus on execution of strategy

o Enhanced position in pension markets Hungary and Poland

o First step in fast-developing Turkish life insurance and pension market

o Expanded footprint in Latin America with Brazilian life insurance joint venture

o Presence in Spanish bank distribution channel extended

o Continued roll-out across highly developed coastal provinces and new asset management joint venture in China

o Launch of India life insurance and pension business


Remuneration

Alex Wynaendts, CEO & Chairman of the Executive Board

Leo van Wijk, Chairman Compensation Committee of the Supervisory Board


Remuneration AEGON

o Salary freeze for senior management (except for CAO increase in The Netherlands)

o Cancellation of worldwide stock option program for all employees, including management

o 2008 total variable compensation ~30% below 2007 levels (EUR 75 mln vs. EUR 105 mln)

o Variable remuneration of senior management restrained as much as possible in 2009 until a new remuneration policy is in place

o New remuneration policy to be implemented for senior management in 2010, in line with new Executive Board policy


Remuneration AEGON Executive Board

o No variable compensation over the year 2008

o No increase of fixed base salaries in 2009

o No variable compensation over the year 2009

o Severance payments limited to 1 year fixed base salary

o Development of new remuneration policy, to be submitted to the AGM in 2010

o Base salary Jan Nooitgedagt EUR 700,000 gross per year

o No sign-on bonuso Defined contribution pension plan to which

AEGON will contribute 25% of fixed salary



Presentation on the course of business andsignificant events in 2008

Presentatie over de gang van zaken enbelangrijke gebeurtenissen in 2008

Agenda



Annual Report 2008 and Annual Accounts 2008:Proposal to adopt the Annual Accounts 2008

Jaarverslag 2008 en Jaarrekening 2008:Voorstel tot vaststelling van de Jaarrekening 2008

Agenda


Full year 2008 results

Jos Streppel, Chief Financial Officer


Strong capital position

EUR 2.9 billion

S&P risk-based insurance capital model excess capital in operating units above AA level and holding

December 31, 2007

EUR 1.6 billion

December 31, 2008

EUR 5.6 billion (183%)

Insurance Group Directive (IGD) surplus capital*

EUR 6.7 billion (190%)

AEGON’s IGD ratio of 183% compares well with the average for European peers of 144%**

* The calculation of the IGD (Insurance Group Directive) capital surplus and ratio have been changed from the disclosure in the previous year to better reflect regulatory solvency requirements of local regulators and are based on Solvency I capital requirements on IFRS for entities within the EU, and local regulatory solvency measurements for non-EU entities. Specifically, required capital for the life insurance companies in the US is calculated as two times the upper end of the Company Action Level range (200%) as applied by the NationalAssociation of Insurance Commissioners in the US.

** Peers include AXA, Aviva, Allianz, CNP, Swiss Life, Prudential plc, Zurich Financial

NAIC RBC ratio 350%336%


Core capital primarily impacted by unrealized losses

Dec 31, 07excluding

revaluationreserves

Net income Movements inforeign currency

translationreserves

Dividends andcoupons on

perpetuals (netof tax)

Convertible corecapital securities

Other changes Dec 31, 08excluding

revaluationreserves

Revaluationreserves

Dec 31, 08

Core capital* development 2008(EUR billion)

o Decline in core capital primarily driven by unrealized losses (revaluation reserve)o Widening of credit spreads had a significant impact on unrealized losses o Unrealized bond losses are not a good indication for future credit losses

16.2

AEGON did not reclassify securities from available-for-sale to held-to-maturity

(7.2)3.0 (0.1)

9.1

(0.2) (0.9)(1.1)15.7

* Core capital is the sum of shareholders’ equity and the EUR 3 billion convertible core capital securities issued to Vereniging AEGON and funded by the Dutch State


Underlying earnings to net income development in 2008 (EUR million)

1,573 (1,619) 35

(1,038)(12) (21)

(1,082)

2008 net loss driven by fair value items and impairments

2008 net income mainly impacted by financial markets:o Underlying earnings affected by reserves strengthening, DPAC* and lower fees o Underperformance of fair value itemso Impairments on structured assets, financial institutions, high yield and equity o Net income also includes an extraordinary tax charge of EUR 490 million

Underlying earnings before tax

Fair value items performance

Gains on investments

Impairment charges

Other charges Income tax Net income

* Deferred policy acquisition costs


2007 2008 2007 2008

New life salesAmericas(USD million)

o 2008 new life sales down 20% to EUR 2,631 million – In the Americas Boli/Coli* and life reinsurance drove the decline in sales– UK sales held up well due to growth in individual annuities and corporate pension markets– Dutch new life sales declined although retail life sales were resilient

2007 2008

1,276 945 1,183 1,222 260 219

2008 new life sales impacted by market turmoil

New life salesUnited Kingdom(GBP million)

New life salesThe Netherlands(EUR million)

* Bank-owned and corporate-owned life insurance


2007 2008 2007 2008

o 2008 net deposits of EUR 3.4 billion (+38%)– Continued strong inflows in institutional fee based products, retirement plans in the US– Strong increase in net deposits driven by fixed annuities

o 2008 gross deposits of EUR 40.8 billion (-8%)– Growth of fixed annuities in the US– Other countries higher due to inclusion of asset management JV in China

2007 2008

3,723 3,680 1,567 5,947 755 1,642

Strong deposits drive net inflows

Gross VA* depositsAmericas(USD million)

Gross FA* depositsAmericas(USD million)

Total gross depositsOther countries(EUR million)

* VA = Variable annuities; FA = Fixed annuities


2007 2008 2007 2008

Value of new businessAmericas(USD million after tax)

o 2008 value of new business down 10% to EUR 837 million– VNB in Americas up 4% due to a rise in fixed annuities sales– Higher VNB in the UK driven by higher margins– Lower VNB in Other countries mainly due to lower sales in Taiwan– VNB in the Netherlands declined whereas the IRR rose to 10.8%

2007 2008

581 604 157 186 51 43

Strong value of new business

Value of new businessUnited Kingdom(GBP million after tax)

Value of new businessThe Netherlands(EUR million after tax)


Conclusions

o Earnings clearly impacted by financial markets

o Core business remains resilient

o Capital position remains strong

o Cost reductions underway

o Adequate contingencies in place

Weathering the storm





Agenda


Voting procedure / Stemprocedure

Voorafgaand aan de stemming

- Plaats de smartcard aande bovenzijde met degoudkleurige chip naar voren

- Uw naam verschijnt inhet display

Tijdens stemming

- De stemkeuzes verschijnenop het display

- Druk op toets

- 1 = Voor

- 2 = Tegen

- 3 = Onthouding

- Uw stemkeuze verschijntop het display

- Tijdens de stemperiodekunt u uw stem wijzigen

- Uw laatste keuze geldt

Prior to the voting

- Insert the smartcardin the device with the goldenchip facing you

- Your name appears inthe display

During the voting

- The voting options appearon the display

- Press button- 1 = For- 2 = Against- 3 = Abstain

- Your choice appears onthe display

- During the voting youcan change your vote

- Your last choice counts





Vote / Stemming

Vote on / Stemming over


Agenda


Dividend 2008

Dividend over het boekjaar 2008


o Dividend policy unchanged - based on capital and cash flow positiono No final dividend payment on common shares as part of capital

preservation measures

Dividend of EUR 0.30 per share

Dividend (EUR)

0.240.300.31 0.32

0.550.62

0.300.30

2006 2007 2008Interim dividendFinal dividendFull year dividend


Agenda


Dividend 2008

Dividend over het boekjaar 2008


Agenda


Proposal to release the members of theExecutive Board from liability for their duties

Voorstel tot het verlenen van kwijting aande leden van de Raad van Bestuur


Vote / Stemming


Proposal to release the members of theExecutive Board from liability for their duties

Voorstel tot het verlenen van kwijting aande leden van de Raad van Bestuur



Agenda


Proposal to release the members of theSupervisory Board from liability for their duties

Voorstel tot het verlenen van kwijting aan deleden van de Raad van Commissarissen


Vote / Stemming

Vote on / Stemming overAgenda item 6 / Agendapunt 6

Proposal to release the members of theSupervisory Board from liability for their duties

Voorstel tot het verlenen van kwijting aan deleden van de Raad van Commissarissen



Proposal to appoint the independent auditor

Voorstel tot benoeming van de externe accountant

Agenda


Vote / Stemming


Proposal to appoint the independent auditor

Voorstel tot benoeming van de externe accountant



Proposal to appoint Mr. J.J. Nooitgedagt to the Executive Board

Voorstel tot benoeming van de heer J.J. Nooitgedagt als lid van de Raad van Bestuur

Agenda


Proposal to appoint / Voorstel tot benoeming

Curriculum vitaeName / Naam Jan NooitgedagtAge / Leeftijd 55Nationality / Nationaliteit DutchShares held in the company /Aantal aandelen in de vennootschap

None

Former occupations / Vorige functies

Various positions at Ernst & Young, including Managing Partner for the Netherlands and Belgium, and member of the Global Managing Group

Membership of other Boards / Andere bestuursfuncties

None





Agenda





Vote / Stemming




Proposal to reappoint Mr. D.G. Eustace to the Supervisory Board

Voorstel tot herbenoeming van de heer D.G. Eustace als lid van de Raad van Commissarissen

Agenda


Proposal to reappoint / Voorstel tot herbenoeming

Curriculum vitaeName / Naam Dudley EustaceAge / Leeftijd 73Nationality / Nationaliteit Joint British and CanadianShares held in the company /Aantal aandelen in de vennootschap

None

Main occupation / Hoofdfunctie Non-executive board member of various companiesFormer occupations / Vorige functies

Vice-Chairman and CFO of Royal Philips Electronics N.V.; Chairman of Smith & Nephew plc, London UK

Other memberships / Andere (bestuurs)functies

Member of the European Advisory Council for Rothschilds; Chairman of the Supervisory Board of the Nielsen Company; Member of the Council of the University of Surrey in the United Kingdom





Agenda





Vote / Stemming



Agenda


Proposal to reappoint Mr. S. Levy to the Supervisory Board

Voorstel tot herbenoeming van de heer S. Levy als lid van de Raad van Commissarissen


Proposal to reappoint / Voorstel tot herbenoeming

Curriculum vitaeName / Naam Shemaya LevyAge / Leeftijd 61Nationality / Nationaliteit FrenchShares held in the company /Aantal aandelen in de vennootschap

None

Main occupation / Hoofdfunctie Non-executive director of Nissan Motor Company, Renault Spain and Safran

Former occupation / Vorige functie

Executive Vice-President and CFO of Renault Group


Member of the Supervisory Boards of SegulaTechnologies Group and TNT N.V.


Agenda








Vote / Stemming




Proposal to appoint Mr. A.W.H. Docters van Leeuwen to the Supervisory Board

Voorstel tot benoeming van de heer A.W.H. Docters van Leeuwenals lid van de Raad van Commissarissen

Agenda


Proposal to appoint / Voorstel tot benoeming

Curriculum vitaeName / Naam Arthur Docters van LeeuwenAge / Leeftijd 63Nationality / Nationaliteit DutchShares held in the company /Aantal aandelen in de vennootschap

None

Main occupation / Hoofdfunctie Chairman of Holland Financial Centre(until May 1, 2009)

Former occupation / Vorige functie

Chairman of the Netherlands Authority for the Financial Markets (AFM); Chairman of the Board of Procurators-General of the Netherlands; Director-General of the Security Service of the Netherlands


Chairman of the Advisory Board of MeesmanInvestments B.V.; Chairman of the Advisory Board of Independent Risk Solutions; Member of the College of Deans Avicenna Academy for Leadership; Senior Research Fellow at Netherlands School for Public Administration




Voorstel tot benoeming van de heer A.W.H. Docters van Leeuwen als lid van de Raad van Commissarissen

Agenda




Voorstel tot benoeming van de heer A.W.H. Docters van Leeuwenals lid van de Raad van Commissarissen

Vote / Stemming




Proposal to authorize the Executive Board to issue common shares

Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen

Agenda



Proposal to authorize the Executive Board to issue common shares

Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen

Vote / Stemming




Proposal to authorize the Executive Board to restrict or exclude pre-emptive rights upon issuing common shares

Voorstel tot machtiging van de Raad van Bestuur tot beperking of uitsluiting van voorkeursrechten bij de uitgifte

van gewone aandelen

Agenda


Vote / Stemming


Proposal to authorize the Executive Board to restrict or exclude pre-emptive rights upon issuing common shares

Voorstel tot machtiging van de Raad van Bestuur tot beperking of uitsluiting van voorkeursrechten bij de uitgifte

van gewone aandelen


Agenda


Proposal to authorize the Executive Board to acquire shares in the Company

Voorstel tot machtiging van de Raad van Bestuur tot verkrijging vaneigen aandelen door de Vennootschap


Vote / Stemming


Proposal to authorize the Executive Board to acquire shares in the Company

Voorstel tot machtiging van de Raad van Bestuur tot verkrijging vaneigen aandelen door de Vennootschap


Agenda


i. Retirement of Mr. W.F.C. Stevens as a member of the Supervisory Board

ii. Retirement of Mr. J.B.M. Streppel as a member of the Executive Board

i. Aftreden van de heer W.F.C. Stevens als lid van de Raad van Commissarissen

ii. Aftreden van de heer J.B.M. Streppel als lid van de Raad van Bestuur


Agenda


Any other business

Wat verder ter tafel komt


Agenda


Close of the meeting

Sluiting

Local knowledge. Global power.

Thank you

Dank u wel

Welcome to the Annual General Meeting of Shareholders ...€¦ · Welcome to the Annual General...

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